Advanced Micro Devices Tuesday's first fiscal quarter earnings were reportedly outstripping expectations and provided a strong forecast for current quarterly earnings.

AMD Rose shares are over 4% in expansion trading.

Here is how chipmakers expect LSEG for the quarter ended March 29:

• Earnings per share: 96 cents adjustment vs. 94 cents expectation
• income: US$7.44 billion vs. US$7.13 billion

In the current quarter, AMD expects sales of about $7.4 billion and gross margin of 43%, while Wall Street's estimated sales of $7.25 billion at 86 cents.

AMD's forecast also includes the $800 million cost the company said it will incur as the U.S. restricts the company's export of some artificial smart chips in the quarter.

The company reported net income of $709 million, or 44 cents per diluted share, compared with net income of $123 million, or 709 million cents per share, or 7 cents per share. Revenue grew by 36% per year.

AMD is the second-ranked server central processing unit provider, second only to Intelbut in recent years, its EPYC processor family has been in market share.

The company is also the closest competitor Nvidia Used for "large GPU" or graphics processing unit. These are the thousands of chips used to build and deploy AI-generated data centers. It made $5 billion in the company's AI GPU sales in fiscal 2024.

Both reported in the company's data center segment, with sales in the sector of $3.7 billion, surpassing StreetAccount estimates. Data center sales grew 57% per year, and the company attributed the demand for EPIC processors and their instinctive GPUs.

The company's other major market segments, customers and games, include chips for consumer devices such as laptops, gaming PCs and gaming consoles. The overall market segment grew 28% annually to $2.9 billion. AMD said its sales of laptops and PC chips are called customer revenue, and the company released 68% of sales last summer due to strong demand for the Zen 5.

However, gaming sales fell 30% year-on-year, and the company attributed to a decline in console chip revenue.

AMD's embedded segment is primarily the company's 2022 acquisition of Xilinx, which fell 3% per year to $823 million.

watch: Chip stocks are reduced to NVIDIA, AMD warns China about higher costs of export control